Taking grants only and not the loan

2022-23 OSAP Application for Full-time Students

You have the option of taking just your grants and not the loan.

If you submit your request online, it’s typically processed the next business day. You can also contact your financial aid office to make your request. The deadline to make your request or to change your mind is 40 days before the end of your study period.

We will provide the results of your request and could include one of the following scenarios.

• If past the deadline: The deadline to request the no loan option is 40 days before the end of your study period. If we receive your request past this deadline, it cannot be completed and the loan will be released to you. Contact the National Student Loans Service Centre (NSLSC) for options that may be available to you concerning early repayment of the loan.
• If you haven’t gotten any of your loan: All of your loan is on hold. The first portion of your loan, which is usually released at the start of your study period (e.g. September) will not be released. The remaining amount, which is scheduled for release halfway through your study period (e.g. January) will also not be released.
• If you’ve already gotten some of your loan: If your request is received after your first loan instalment is made (e.g. September), only the remaining loan will not be released.

If you change your mind and want the loan

If you find that you need the loan after all, you can change your mind. Return to your Status of your application or Funding summary page and select the “How to change your mind” link. This request is typically processed the next business day. We will provide the results of your request and could include one of the following scenarios.

• If past the deadline: The deadline to change your mind and get the loan is 40 days before the end of your study period. If your request is received after the deadline, it cannot be processed online and we’ll advise you to contact your financial aid office to discuss your situation.
• If you haven’t gotten all or part of your loan: You will receive the amount of loan that hasn’t already been released. If you have not received any of your loan, you will get both instalments.

Why your grant could become a loan

Normally, grants through OSAP are money you don't need to pay back. However, even if you decline your loan and only take your grants, all or part of your OSAP grants may be converted into a loan if:

• You withdraw from studies or stop taking the minimum course load within the first 30 days of starting school and don’t return as a full-time student within 5 months in the same academic year
• As a result of an OSAP reassessment, you’re not entitled to all or part of the grants that you received (e.g. dropped courses, unreported income)
• The income provided by you and/or your family cannot be verified within one year from the start of your study period (this applies only to the Ontario Student Grant)

If your grant is converted to a loan, it’s:

• added to your loan balance
• included in the monthly loan payment you’ll make once you’ve left school